Conoco may sell Rockies Express pipeline stake

17 November 2009 @ 10:48 am EDT

ConocoPhillips could sell its 25 percent stake in the Rockies Express Pipeline as part of the oil giant's plan to divest $10 billion in assets, a senior executive said on Tuesday.

ConocoPhillips Executive Vice President for Refining, Marketing and Transportation, Jim Gallogly, speaks during the Reuters Energy Summit in Houston June 2, 2008. Gallogly said on Monday he did not know if the company was a target of the Commodity Futures Trading Commission's investigation into manipulation of the oil market. Gallogly was asked if the CFTC was looking at the company as part of the agency's six-month probe.

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Conoco owns a 25 percent stake in the 1,679-mile line that stretches from northwestern Colorado to eastern Ohio and can deliver 1.8 billion cubic feet per day of gas.

"That might be a good candidate for us," Jeff Sheets, Conoco's senior vice president for planning and strategy told the Bank of America Merrill Lynch energy conference.

The final 195 miles of the eastern portion of the huge pipeline became operational last week, according to Kinder Morgan Energy Partners LP, which owns 50 percent of the line.

The remaining 25 percent of the pipeline is owned by Sempra Energy.

Conoco has previously said it would consider selling its stake in a Canadian syncrude operation, as well as older producing fields.

(Reporting by Matt Daily, editing by Maureen Bavdek)